Chart of the day

Early in a new presidential term and with the next election several years away, the powers that be tend to be more willing to address such quaint topics as fiscal responsibility and balancing budgets. The downside to this 'belt tightening' is that it can be a drag on the economy. However, in the interest of self preservation, the party in power tends to be motivated to stimulate the economy as a presidential election nears. Today's chart illustrates how the market has performed following a mid-term election year low until the following presidential election year (plus or minus one quarter) high. While there's still a lot of time left on the clock, the current rally (gold bar) is off to a decent start.